FAQ
Q: DO I NEEN A REAL ESTATE LAWYER TO SALE OR BUY MY HOME?
A: The simple answer is yes. For most people buying a home is one of the biggest investments they will ever have and thus our governments ensure that such investment transaction is handled by lawyers to protect the rights of all parties involved.
Q. HOW MUCH IS LEGAL FEES IF I AM BUYING OR SELLING MY HOME?
These are our FIXED LEGAL FEES TO HELP YOU PLAN:
Purchase new condo: $1,199.00 plus HST and Disbursements,
Purchase resale condo: $1,299.00 plus HST and Disbursements,
Purchase new home: $999.00 plus HST and Disbursements,
Purchase resale home $1,299 plus HST and Disbursements
Sale: 999.00 plus HST and Disbursements
Refinance: $899.00 plus HST and Disbursements
Transfer [without a mortgage] $689.00 plus HST and Disbursements
Multiunit -Tenanted property (up to 2 rental units): $1,795 plus HST and Disbursements
Please note that in addition of the fees, you will pay HST and the disbarments.
Q: I AM BUYING MY HOME, WHAT IS MY ROLE'S ROLE IN PURCHASE TRANSACTIONS?
– Receive and review your offer to purchase [ if requested- especially when a buyer has no agent] and provide you with her/his opinion so that you can make an informed decision.
– Conduct a title search and inform you of any issues of concern, and require the seller's lawyer to ensure that problems found on the title are removed before or on closing;
– Ensures that you obtain a clear title free of all encumbrances before or on closing;
– Advise you about title insurance and if needed seek and obtain title insurance policy;
– Receive and Review the mortgage instructions from your mortgage company and advise you of what is required by the lender – if any is needed;
– Prepare Transfer/Deed, Land Transfer Tax Affidavit, Charge/Mortgage, closing documents
– Meet with the client to explain the legal closing documents and attend to client's signing;
– Receive funds from the mortgage company and prepare closing documents;
– Prepare closing funds and arrange a courier to deliver the same to the seller's lawyer;
– Provide solicitor's undertakings where required,
– Receive keys from the seller's lawyer, complete certificate of execution
– Provide solicitor's undertakings where required,
– Complete registration
– Advise the seller's lawyer to release funds,
– Deliver closing funds, handle all necessary bank transactions,
– Provide you, and your mortgage company with a complete report of your transaction, including closing documents
Q: I AM SELLING MY HOME, WHAT IS MY ROLE'S ROLE IN MY SALE TRANSACTIONS?
Your lawyer's role when you are selling your home is to:
Receive and review your offer to purchase [ if requested- especially when a buyer has no agent] and provide you with her/his opinion so that you can make an informed decision;
Seek and obtain information relating a mortgage or line of credit registered against the of the home,
If there is a mortgage[s] or a line of credit registered against the title of the home, prepare a request for a payout statement from the mortgage company/lender holding interest in the property,
Receive, review and reply to requisition letter received from the buyer's lawyer,
Obtain tax certificate or most recent proof of payment for property taxes,
Prepare a statement of adjustment,
Prepare direction refunds,
Obtain keys from the client,
Prepare closing documents and attend to the client to review and signing,
Prepare a closing package – including closing letter, Vendor's closing certificate, Direction retransfer,
Arrange delivery of closing documents and keys to the buyer's lawyer,
Receive funds from the purchaser's lawyer and release client's interest in the home,
Pay the mortgage company/lender, if any
Pay the real estate agent fees, if any
Pay legal fees and any other disbursement as per client's instructions and pay the balance to the client, and
Prepare a closing report for the client.
Q: WHAT IS TITLE INSURANCE?
Title Insurance is an insurance policy issued by an insurance company which provides broad coverage against many title problems when buying a home.
The premium is only paid once at the time of closing. Title insurance has no deductible, so the premium is truly a one-time fee. Coverage is valid for the entire time that you will own your home.
Q: WHY SHOULD I PURCHASE TITLE INSURANCE?
Purchasing a home is an exciting venture and after making the choice to do so, you want the peace of mind knowing that your investment is protected. Title insurance protects both the purchaser and the lender against the challenges to the ownership of your home or from problems related to title to your home. The policy provides you as a purchaser protection against losses due to title defects, even if the defects existed before you purchased your home, provided you did not know of the problem at the time of closing. Title insurance policy can protect you against pre-existing municipal work orders, frauds and forgeries which can affect the legal ownership of the property.
Currently in Ontario, you have choices of many title insurance companies. Generally, our real estate lawyers complete transactions using either First Canadian Title Insurance, Stewart Title Insurance or Title Plus. Feel free to google these companies to learn more about their coverage.
Q: HOW MUCH LAND TRANSFER TAX WILL YOU PAY?
Land Transfer Tax is payable by you when you purchase property and is based on the purchase price of your new property.
Please see the following website: www.fin.gov.on.ca/en/bulletins/ltt/2_2005.html for calculations. If you have any questions, please contact our office and we will assist you in determining the amount payable.
Q: DO I PAY LAND TRANSFER TAX IF I AM FIRST TIME BUYER?
Yes and no. If you are buying that is less than $360,000.00 in Ontario, you would likely not pay LTT. However, if you are buying a home of a value of over $365,000.00 you will be paying some LTT.
Please Note: If you are a first-time home buyer you are exempted from paying the first $4000.00 of your LTT and hence if your LTT is less than $4000.00 for values of $250,000.00, you would have no taxes to pay.
Q: WHAT ABOUT MY PROPERTY TAXES?
Because your taxes are typically paid in advance, you may have paid taxes to a date past when your property is sold. In such a situation, the purchaser will compensate you for the difference.
Q: WHAT UTILITIES COMPANIES SHOULD BE IN TOUCH WITH?
For Purchasers/buyers
If you are buying a home, you must contact all utility companies that service the property, to arrange to have the service either connected or continued. Where applicable, these include hydro, water, gas, fuel oil, telephone, and cable TV.
For Sellers/Vendors:
If your home is heated by oil, it is your responsibility to have the tank filled on closing. An adjustment will be made so that the Purchasers will reimburse you for this cost. You will also have to make arrangements to have the meters read by all the applicable utility companies. If you rent or have a purchase plan set up for any heating or cooling equipment, please let us know the details so that a proper adjustment or repayment can be made. It is your responsibility to be up to date and have paid off all outstanding utility bills as of the date of sale.
Q: WHEN DO YOU GET THE KEYS TO YOUR HOUSE?
On the day of closing, assume that you will not get your keys until 5.00 p.m. We will make every possible effort to obtain your keys earlier. It is probably a good idea to arrange for your moving truck to come in the afternoon. This will avoid unnecessary charges by the moving company, as a result of any delays.
Q: WHAT ARE DISBUSRSMENTS FOR A STANDARD REAL ESTATE?
The following is a list of standard disbursements with estimated costs to help you budget for your closing.
Please contact us for a breakdown should you have any questions.
Q: What are Real Estate Disbursements – in Purchase transaction?
Registration on title: $77.31 each [ fees for land registry]
(regularly two per transaction – one for transfer of ownership, one for registration of mortgage)
Sheriff's Certificate: $11.95 each
(certificates must be printed for all current owners and new owners on title)
Abstract of Title [Title search]: $275 – $450.00 +HST approx.
Title Insurance Policy: $189 – $500.00 approx. (condos less expensive than freehold)
Courier Fees: $40.00+HST total approx.
Certified Cheques: $15.00+HST each
Tax Certificate on Property: $72.50+HST total
Status Certificate (Condos only) $150.00 + HST
Postage, photocopies, and scanning: $20 + HST
Fax service: $20 + HST
Conveyancer usage fee: $25 + HST
Q: What are Real Estate Disbursements – in sale transaction?
Transaction Levy: $65.00+HST
(charged from our practice insurance for coverage on all transactions not proceeding by way of title insurance)
Sub-search of Title: $40.00+HST approx.
Postage, photocopies, and scanning: $10 + HST
Fax services: $10 + HST
Courier Fees: $40.00+HST
Certified Cheques: $15.00+HST each
Tax Certificate on Property (if you can't provide a copy): $72.50+HST total
Conveyancer usage fee: $25 + HST
Q: What are Real Estate Disbursements – in Refinancing transaction?
Registration on title: $74.72 each
(regularly one per transaction – registration of mortgage)
Sub-search of Title: $40.00+HST total
Sheriff's Certificate: $11.50 for each person
Title Insurance Policy: $118.00 (approximate)
Postage, photocopies, and scanning: $10 + HST
Fax services: $10 + HST
Courier Fees: $40.00+HST total
Certified Cheques: $15.00+HST each
Conveyancer usage fee: $22.50
Cheque deposit fee (optional): $75 + HST
